By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

Bank of the Bahamas (BOB) needs to become a reliable and supportive partner to Bahamians and international businesses as part of its recovery strategy, the Opposition’s finance spokesman believes.

KP Turnquest said bank’s reduced risk appetite signals a tightening of credit availability, which will likely result in even less capital being made available for commercial lending.

He added that while the bank’s focus on government deposits and transactions was not bad, it pointed to a weakness of the Bank of the Bahamas ‘brand’ within the private sector.

“The bank must, as a part of its strategy, include a plan to grow the brand as a reliable and supportive partner to local and international business,” Mr Turnquest said.

“Hopefully, the plan set out is not one dependent on the Government for bailout and support, as it did before with Bahamas Resolve and direct deposits from NIB, but one focused on development and growth.”

In a statement last week, Bank of the Bahamas managing director, Wayde Christie, pledged to “leave no stone unturned” in returning to sustainable profitability.

He noted that the Bank of the Bahamas’ ‘transformation team’ had $3.5 million in recovered assets in hand, or under contract, since their appointment in January, adding that troubled loans were being renegotiated, with Bank of the Bahamas also introducing new corporate governance policies and a new, more conservative approach to lending.

The bank, according to its managing director, will seek to shed illiquid assets and increase government and private sector deposits to boost its liquidity.

While Mr Christie alluded to restructuring that could include ‘natural attrition’, Mr Turnquest said such a move could leave the Out Islands vulnerable and without banking services.

“This is not helpful for the national development effort. The bank ought to consider these underserved or unserved islands for niche or restricted banking services, giving Bahamians in those islands the dignity of a secured savings institution and bill processing centre,” said Mr Turnquest.